In relation to behavioural finance,if an investor is influenced by the manner in which an investment opportunity is presented this is called:
A) trading noise.
B) herding instinct.
C) framing behaviour.
D) disposition effect.

Question

Quizplus · Accepted Answer

This is an example of framing behavior, where the way information is presented can influence an investor's decision-making. Trading noise refers to random fluctuations in the market that can lead to irrational trading. Herding instinct refers to the tendency of investors to follow the crowd rather than making independent decisions. Disposition effect is the tendency to sell profitable assets too soon and hold onto losing assets too long.

In Relation to Behavioural Finance,if an Investor Is Influenced by the Manner